State Chairman - Florida
Americans for Prosperity
Tallahassee Democrat
Like many taxpayers, the 11,000 Florida members of Americans for Prosperity were incredibly excited to see that a Taxation and Budget Reform Commission subcommittee unanimously approved the Taxpayer Protection Amendment on Feb. 11. If approved by the full commission, this legislation will be on the November ballot. No legislative approval, petitions or Supreme Court approval are necessary.
This is an unbelievable opportunity for taxpayers to enact the most substantive tax reform plan in Florida's history.
The Taxpayer Protection Amendment is the most effective method of ensuring that we get fiscal responsibility from our government. It empowers citizens to have more control over their tax dollars and their government.
In 1992, Colorado enacted the Taxpayer's Bill of Rights. Within only a few years, it turned Colorado's economy around. Before enacting its taxpayer amendment, Colorado ranked 43rd nationally in economic growth per capita. Since then, it has ranked seventh. Also, Colorado ranked 33rd nationally in job growth before the amendment; in the years since then, it has ranked sixth.
A Taxpayer Protection Amendment smooths over the effect of the boom-bust business cycle on local governments. Typically, during times of economic boom, politicians receive drastically increasing amounts of revenue from property taxes. Instead of setting this revenue aside or refunding it to taxpayers, politicians usually spend it on vote-buying projects. However, the business cycle continues, and we eventually reach bust. At this point, revenues decline.
This leaves politicians with several options. They can raise taxes to keep revenue levels the same, but this hurts the economy (especially during a recession). They also can make spending cuts to pre-boom levels, but this is usually too unpopular to be feasible. The only other option is to run deficits, but this is also irresponsible.
With a Taxpayer Protection Amendment in place, this scenario is unlikely and unnecessary. A TPA ties spending increases to inflation and population growth. This ensures that government spending is at responsible levels. In addition, a TPA forces government to set aside some excess revenue during a boom cycle in a "rainy day" fund. This fund makes spending cuts, tax increases and budget deficits unnecessary.
Perhaps most importantly, a Taxpayer Protection Amendment forces politicians to get voter approval for any tax or fee increase. This ensures that citizens are not being over-taxed. Citizens will approve tax increases only if they feel as if they can afford the added burden.
Also, it keeps government responsible and efficient. Since politicians need voter approval for any project that requires a tax increase, they'll work to make sure that the project is as efficient and waste-free as possible. If the project is seen to be full of unnecessary pork, citizens can vote it down and insist that politicians strip the pork from the proposed legislation.
Florida is at an economic crossroads, teetering on recession.
Some citizens are being taxed out of their homes, and others are being taxed out of the state entirely. Many families moved to Florida from the Northeast and Midwest, coming because of the low cost of government. However, they are now moving halfway back home, settling in nearby low-tax states such as South Carolina and Alabama.
These days, it seems as if everyone has a proposal for tax reform. However, the Taxpayer Protection Amendment is the only proposal that has proven to limit the excessive growth of government and ensure fiscal responsibility on both the state and local level. In addition, had this proposal already been in place, the average Leon County resident would have saved over $500 in taxes last year.
Our real estate market and our economy cannot continue to thrive unless we enact necessary and substantial tax reform. Floridians deserve a Taxpayer Protection Amendment.
For more information, visit www.afpfl.com.
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